As per case facts, the petitioner's land was acquired for a highway project, leading to an arbitration case. The Divisional Commissioner, acting as Arbitrator, terminated the arbitration mandate and kept ...
2026:HHC:18698
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Arbitration Case No. : 216 of 2025
Reserved on :08.05.2026
Decided on : 20.05.2026
Rajender Kumar …Petitioner
Versus
National Highway Authority of India & Anr.
…Respondents
The Hon’ble Mr. Justice Virender Singh, Judge.
Whether approved for reporting?
1
Yes.
For the petitioner : Ms. Madhurika Sekhon Verma,
Advocate.
For the respondents: Ms. Shreya Chauhan,
Advocate, for respondent No.1.
Mr. Tejasvi Sharma, Additional
A.G., for respondent No. 2.
Virender Singh, Judge
PetitionerRajender Kumar, has filed the
present application under Section 29(A) of the Arbitration
and Conciliation Act, 1996 (hereinafter referred to as ‘the
Act’), against the order dated 11.01.2023, passed by the
Divisional Commissioner, Mandi, (hereinafter referred to as
‘the learned Arbitrator) in case No. 620/2018, titled as
‘Rajender Kumar Versus National Highway Authority of
1
Whether Reporters of local papers may be allowed to see the judgment? Yes.
2 2026:HHC:18698
India & Anr.’ (Petitioncumappeal under Section 3 (G) 5 of
the National Highway Act, 1956).
2. The present application has been filed, on the
ground, that the land of the applicant was acquired for the
purpose of widening/fourlaning of National Highway 21.
3. It is the further case of the applicant that his
case, along with the other connected cases, was taken up
on 11.01.2023, and the case was listed for evidence of the
applicant.
4. The order passed by the learned Arbitrator is
stated to be bad, as, without any fault on the part of the
applicant, mandate of arbitration has been terminated, and
the case has been ordered to be kept in abeyance.
5. It is the further case of the applicant that the
learned Arbitrator is required to refer the matter to this
Court for extension of time, instead of keeping the case in
abeyance, as, the proceedings are required to be completed
within six months.
6. According to the applicant, he could not
approach this Court for extension of time, due to the fact
that his wife was unwell and was under treatment with PGI
Chandigarh.
3 2026:HHC:18698
7. On the basis of above facts, a prayer has been
made to extend the time, with a direction to the Arbitrator
to decide the matter in a time bound manner.
8. When put to notice, the application has been
contested by respondent No. 2, on the ground, that Section
29(A) of the Act provides time limit for arbitral award. In
the present case, arbitral award could not be passed within
twelve months and thereafter, no extension of time has
been sought by either of the parties.
9. Prayer for extension of time has also been
opposed on the ground that the delay does not deserve any
indulgence and as such, a prayer has been made to
dismiss the application.
10. In nutshell, it is the case of respondent No. 2
that the applicant has failed to make out a case for
extension of time, in the present application, which, has
been filed after a delay of more than two years.
11. The Hon’ble Supreme Court in a case reported
as Tata Sons Pvt. Ltd. (Formerly TATA Sons Ltd.) vs.
Siva Industries and Holdings Ltd. And others, 2023 (1)
SCALE 793, has discussed the provisions of Section 29 (A)
4 2026:HHC:18698
of the Act. Relevant paragraphs 24 & 26 of the judgment,
are reproduced as under:
“24 The provisions of Section 29A, as originally
introduced into the statute, mandated that all
awards shall be made within a period of twelve
months from the date on which the arbitral tribunal
enters upon the reference. The explanation clarified
when the arbitral tribunal would be deemed to have
entered upon the reference, namely, the date on
which the arbitrator has received written notice of
the appointment. The mandatory nature of the
provisions of Section 29A(1) and their application to
all arbitrations conducted under the Act, domestic or
international commercial, was evident from the use
of the word “shall”. In terms of Section 29A(4), in
case the arbitral award was not rendered
within the twelve or eighteen month period
as the case may be, the mandate of the
arbitrator(s) would stand terminated, unless on
an application made by any of the parties, the
court extended time on sufficient cause being
shown.
xxxx. xxx… xxx..
26. Subsection (3) of Section 29A empowers
parties, by consent, to extend the period specified in
subsection (1) for making the award by a further
period not exceeding six months. Thereafter, if the
award is not made within the period which is
specified in subsection (1) or the extended period
specified in subsection (3), the mandate of the
arbitrator shall terminate unless the court has
extended the period either prior to or after the expiry
of the period so specified. In other words, the
timeline of twelve months for making the
award (in matters other than international
commercial arbitration), is qualified by the
consensual entrustment to the parties under
subsection (3) to extend the period by six months
5 2026:HHC:18698
after which the court is empowered in terms of sub
section (4) to extend the period for making the
award. The submission of the second respondent is
that the provisions of subsection (3) and subsection
(4) must also apply to an international commercial
arbitration. This would merit close scrutiny. The
legislature has not expressly excluded the
applicability of subsections (3) and (4) of Section
29A to an international commercial arbitration. But,
at the same time, it must be noticed that the
rationale underlying subsection (3) is to ensure
that despite the stipulation of twelve months
for the making of an arbitral award in the
domestic context, parties may by consent agree
to an extension of time by a further period of
six months. Such an extension of six months is
envisaged in the case of a domestic arbitration
since there is a mandate that the award shall
be made within a period of twelve months. A
further extension has, however, been entrusted
to the court in terms of subsection (4) of
Section 29A. However, insofar as an international
commercial arbitration is concerned, the statutory
regime is clear by the substantive part of subsection
1 of Section 29A in terms of which the timeline of
twelve months for making an arbitral award is not
applicable to it. In an international commercial
arbitration, the legislature has only indicated that
the award should be made as expeditiously as
possible and that an endeavour may be made to
dispose of the matter within a period of twelve
months from the completion of pleadings.”
(emphasis supplied)
12. The applicant is before this Court, under
Section 29A (4) of the Act. The relevant provisions of
Section 29A of the Act, are reproduced, as under:
6 2026:HHC:18698
“29A. Time limit for arbitral award. — (1)
The award in matters other than international
commercial arbitration shall be made by the
arbitral tribunal within a period of twelve
months from the date of completion of
pleadings under subsection (4) of section 23.
Provided that the award in the matter of
international commercial arbitration may be
made as expeditiously as possible and
endeavor may be made to dispose of the
matter within a period of twelve months from
the date of completion of pleadings under sub
section (4) of section 23.
(2) If the award is made within a period of six
months from the date the arbitral tribunal
enters upon the reference, the arbitral tribunal
shall be entitled to receive such amount of
additional fees as the parties may agree.
(3) The parties may, by consent, extend the
period specified in subsection (1) for making
award for a further period not exceeding six
months.
(4) If the award is not made within the period
specified in subsection (1) or the extended
period specified under subsection (3), the
mandate of the arbitrator(s) shall terminate
unless the Court has, either prior to or after
the expiry of the period so specified, extended
the period:
Provided that while extending the period under
this subsection, if the Court finds that the
proceedings have been delayed for the
reasons attributable to the arbitral tribunal,
then, it may order reduction of fees of
arbitrator(s) by not exceeding five per cent. for
each month of such delay:
Provided further that where an application
under subsection (5) is pending, the mandate
of the arbitrator shall continue till the disposal
of the said application:
7 2026:HHC:18698
Provided also that the arbitrator shall be given
an opportunity of being heard before the fees
is reduced.
(5) The extension of period referred to in sub
section (4) may be on the application of any of
the parties and may be granted only for
sufficient cause and on such terms and
conditions as may be imposed by the Court.
(6) While extending the period referred to in
subsection (4), it shall be open to the Court to
substitute one or all of the arbitrators and if
one or all of the arbitrators are substituted, the
arbitral proceedings shall continue from the
stage already reached and on the basis of the
evidence and material already on record, and
the arbitrator(s) appointed under this section
shall be deemed to have received the said
evidence and material.
(7) In the event of arbitrator(s) being appointed
under this section, the arbitral tribunal thus
reconstituted shall be deemed to be in
continuation of the previously appointed
arbitral tribunal.
(8) It shall be open to the Court to impose
actual or exemplary costs upon any of the
parties under this section.
(9) An application filed under subsection (5)
shall be disposed of by the Court as
expeditiously as possible and endeavour shall
be made to dispose of the matter within a
period of sixty days from the date of service of
notice on the opposite party.”
13. The bare perusal of subclause (4) of Section
29A of the Act demonstrates that the period can be
extended either prior to or after the expiry of the period, so
specified. Meaning thereby, the time limit for passing the
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arbitral award can be extended by this Court, even after
the expiry of the period, so specified, in Section 29A (1) and
(3) of the Act
14. The provisions of Section 29A (4) and (5) have
elaborately been discussed by the Hon’ble Supreme Court
in its recent decision in Rohan Builders (India) Private
Limited versus Berger Paints India Limited, reported in
(2025) 10 Supreme Court Cases 802. Relevant paras19
to 23 of the said judgment, are reproduced, as under:
“19. Rohan Builders (India) (P) Ltd. v. Berger
Paints India Ltd. 2023 SCC OnLine Cal 2645,
highlights that an interpretation allowing an
extension application post the expiry period
would encourage rogue litigants and render the
timeline for making the award inconsequential.
However, it is apposite to note that under
Section 29A(5), the power of the court to extend
the time is to be exercised only in cases where
there is sufficient cause for such extension. Such
extension is not granted mechanically on filing of
the application. The judicial discretion of the
court in terms of the enactment acts as a
deterrent against any party abusing the process
of law or espousing a frivolous or vexatious
application. Further, the court can impose terms
and conditions while granting an extension.
Delay, even on the part of the Arbitral Tribunal,
is not countenanced {H.P. Singh v. Northern
Railways, 2023 SCC OnLine J&K 1255}. The
first proviso to Section 29A(4) permits a fee
reduction of up to five per cent for each month of
delay attributable to the Arbitral Tribunal.
20. Lastly, Section 29A(6) does not support the
narrow interpretation while deciding an of the
expression "terminate". It states that the court
extension application under Section 29A(4)
9 2026:HHC:18698
may substitute one or all the arbitrators. Section
29A(7) states that if a new arbitrator(s) is
appointed, the reconstituted Arbitral Tribunal
shall be deemed to be in continuation of the
previously appointed Arbitral Tribunal. This
obliterates the need to file a fresh application
under Section 11 of the A&C Act for the
appointment of an arbitrator. In the event of
substitution of arbitrator(s), the arbitral
proceedings will commence from the stage
already reached. Evidence or material already
on record is deemed to be received by the newly
constituted tribunal. The aforesaid deeming
provisions underscore the legislative intent to
effectuate efficiency and expediency in the
arbitral process. This intent is also
demonstrated in Sections 29A(8) and 29A(9).
The court in terms of Section 29A(8) has the
power to impose actual or exemplary costs upon
the parties. Lastly, Section 29A(9) stipulates
that an application for extension under sub
section (5) must be disposed of expeditiously,
with the endeavour of doing so within sixty days
from the date of filing.
21. As per the second proviso to Section 29A(4),
the mandate of the Arbitral Tribunal continues
where an application under subsection (5) is
pending. However, an application for extension
of period of the Arbitral Tribunal is to be decided
by the court in terms of subsection (5), and sub
sections (6) to (8) may be invoked. The power to
extend time period for making of the award
vests with the court, and not with the Arbitral
Tribunal. Therefore, the Arbitral Tribunal may
not pronounce the award till an application
under d Section 29A(5) of the A&C Act is sub
judice before the court. In a given case, where an
award is pronounced during the pendency of an
application for extension of period of the Arbitral
Tribunal, the court must still decide the
application under subsection (5), and may even,
where an award has been pronounced, invoke,
when required and justified, subsections (6) to
(8), or the first and third proviso to Section 29
A(4) of the A&C Act.
10 2026:HHC:18698
22. While interpreting a statute, we must strive
to give meaningful life to an enactment or rule
and avoid cadaveric consequences that result in
unworkable or impracticable scenarios. 26 An
interpretation which produces an unreasonable
result is not to be imputed to a statute if there is
some other equally possible construction which
is acceptable, practical and pragmatic.
23. In view of the above discussion, we hold that
an application for extension of the time period for
passing an arbitral award under Section 29A(4)
read with Section 29A(5) is maintainable even
after the expiry of the twelvemonth or the
extended sixmonth period, as the case may be.
The court while adjudicating such extension
applications will be guided by the principle of
sufficient cause and our observations in para 19
of the judgment.”
(Self emphasis)
15. The term ‘sufficient cause’ has nowhere been
defined in the Act, however, ‘sufficient cause’ means the
situation or the reason, which is beyond the ordinary
control of the litigant/parties to the proceedings.
16. In this case, a feeble attempt has been made by
the applicant to demonstrate that there was ‘sufficient
cause’ for not moving the application, when the mandate
was terminated, on 11.01.2023. The present application
has been filed on 10
th
July, 2025, i.e. after a lapse of
almost 2
½ years from the date of termination of the
mandate.
17. In the present case, the applicant has half
heartedly mentioned the cause for moving the present
11 2026:HHC:18698
application, as alleged ailment of his wife and according to
him, she was under treatment in PGI Chandigarh. Neither
any details have been mentioned, nor, any documentary
proof of the same has been annexed. If such type of plea is
accepted to extend the period to conclude the arbitration
proceedings, then, there would be no end to the
proceedings, as every litigant would approach to the Court,
with a prayer to extend the time, as and when, he deems fit
to do so, the same would be against the legislative intent in
enacting Section 29A of the Act.
18. It is no longer res integra that the term
‘termination’ as mentioned in Section 29A(4) of the Act, is
to be considered in the broader context of the provision.
The ‘termination’, as per Section 29A(4) of the Act, must
not be considered absolutistic, as, a window has been
provided by the legislature, by adding the proviso to
Section 29(5) of the Act, where the time can be extended
only for sufficient cause. When the legislature, in its
wisdom, has qualified the term ‘sufficient cause’ with the
word ‘only’, then, the ‘sufficient cause’ is to be interpreted
in view of the scheme of Section 29A. The extension
cannot be granted merely on the filing of an application
12 2026:HHC:18698
and it has to be kept in mind that the judicial discretion of
the Court, in terms of the enactment, acts as a deterrent,
against any party abusing the process of law or espousing
a frivolous or vexatious application.
19. At the cost of repetition, if the scheme of
Section 29A of the Act, is seen, then, initially the timeline
is twelve months, which can be extended with the mutual
consent of the parties and thereafter, time can be extended
only on ‘sufficient cause’.
20. While deciding the application for extension of
time, this Court has to see the fact, as to whether, the
applicant is able to make out a case, which falls within the
definition of ‘sufficient cause’ for extension of time, as the
legislative intent to expeditious resolution should be kept
in mind, which is the fundamental principle.
21. As held in the preceding paras, if the
application is allowed, merely on the asking of the party,
then, there would be no end to the litigation and the object
of Section 29A of the Act would be defeated by allowing
the application, which is filed after a long gap of time.
22. The learned counsel appearing for the
applicant, in the present case, has also relied upon the
13 2026:HHC:18698
decision of this Court, reported as “Arb. Case No. 21 of
2026, decided on 06.05.2026 , titled as Kapoor Singh
and others Versus National Highways Authority of India
and another”, the same is not applicable to the facts and
circumstances of the present case, as the mandate was
terminated on 02
nd
August, 2025, and thereafter, the
petitioner approached this Court, that too, on the ground
of administrative exigency, which, as per the decision
taken in Kapoor Singh’s case (supra), falls within the
definition of ‘sufficient cause’.
23. So far as, “Arbitration Case No. 215 of 2025,
decided on 25.07.2025, titled as “Rajender Kumar
Versus National Highway Authority of India & Anr. ”, is
concerned, neither the issue with regard to ‘sufficient
cause’ has been raised in the said case, nor considered. As
such, no benefit could be derived by the applicant from the
above decision. Moreover, in view of the decision of
Hon’ble Supreme Court in Rohan Builders’ case (supra),
wherein, it has been held that the power of the Court to
extend the time is to be exercised only in case where there
is ‘sufficient cause’ for such extension, no benefit could be
14 2026:HHC:18698
derived by the petitioner, on the basis of the decisions of
this Court, relied upon, as referred to above.
25. In view of the decision of the Hon’ble Supreme
Court in Rohan Builders’ case (supra), the decisions of
this Court are not liable to be taken into consideration, as
a Division Bench of this Court, in case reported as
“Samriti Gupta and another Versus State of H.P. and
others, Indian Law Reports (H.P. Series) 2016 (1) page
403”, has held as under:
“13.Before parting, we may clarify that the judgment in
Arti Gupta case (supra) was rendered by the Hon’ble
Full Bench of this Court and would normally in absence of
any judgment to the contrary by the Hon’ble Supreme
Court be binding on this Bench and in case of any
difference of opinion would be required to be referred to a
larger Bench. However, no such reference is necessary if
the Hon’ble Supreme Court has given a decision in the
matter because as soon as the Hon’ble Supreme Court
gives its decision all decisions of the High Court on the
point are overruled. (Reference in this regard is given to
D.D. Basu Commentary on the Constitution of India,
8
th
Edition and to the judgment of the Hon’ble Supreme
Court in D.C.M. vs. Shambhu, AIR 1978 SC 8).
14.Even otherwise, Article 141 of the Constitution
provides that the law declared by the Hon’ble Supreme
Court shall be binding on all courts within the territory of
India. Therefore, once the Hon’ble Supreme Court has
decided the issue by passing a reasoned order, a fortiori,
the ratio decidendi declared in the said decision would be
binding on all the Courts in the Country for giving effect to
it while deciding the lis of the same nature. All the Courts
are under legal obligation to take note of the said decision
and decide the lis in conformity with the law laid down
therein.”
15 2026:HHC:18698
26. In view of the discussion made above and
considering the decision of Hon’ble Apex Court in Rohan
Builders’ case (supra), this Court is of the view that the
applicant is not able to bring out his case within the
purview of ‘sufficient cause’, to exercise the jurisdiction,
vested in this Court, to extend the time to conclude the
arbitration proceedings.
27. Consequently, the present application is
dismissed.
(Virender Singh)
20
th
May, 2026 Judge
(Pramod Kumar)
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